The upcoming legislative elections in France are expected to be a contentious issue due to the rise in gas prices. Between June and July, gas prices increased by almost 12%, resulting in an average annual bill for French people increasing by 124 euros, from 1,060 euros to 1,184 euros. This increase was largely due to the revaluation of gas network maintenance costs and the rebound in gas prices on the markets.
The Energy Regulatory Commission (CRE) noted that the increase is mainly associated with a 4-year revaluation of gas transmission costs to cover maintenance and modernization expenses for gas infrastructure and the integration of green gas into the system. Despite the rise in prices, the CRE pointed out that the July price remains lower than in January, after the end of the subsidy mechanism that protected households from excessive increases during the energy crisis.
Political parties in France are proposing various measures to address rising energy costs. The Macronist Renaissance party aims to create an energy renovation fund, while the National Rally suggests lowering the VAT rate on gas, electricity, and fuels. The New Popular Front (NFP) plans to lower VAT rates for energy companies and freeze prices for basic necessities. However, implementing these measures may require negotiation with Brussels to ensure compliance with European regulations.
The issue of increasing energy costs will likely remain a key talking point during the legislative elections as purchasing power and affordability are critical concerns for voters. Each political party has proposed different strategies to address rising energy prices and ease